MEB finally done

Pavetim

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Well overall process took 1 yr and 8 months but finally got my LAS approved. Got my retirement orders today for PRDL. Ok just to clarify my 20 years is May 10, 2020 and I am retiring on may 19, 2020 cause that's when my DOS is. I am rated 50% DoD and 100% so i'll get my 50% pension non taxable and then 100% VA non taxable think they quoted me $3356 for my VA. Or does this have that weird calculation?
 

chaplaincharlie

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Your 50% DoD is normally going to be taxable. The best guy on finances is @RonG. There are other rules that effect the final payout. I suggest you chat with RonG.
 

Pavetim

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I mean I have read about recovery of benefits and all kinds of weird calculations. The way I understand it is since I am over 30% Dod, made my 20 years i'll get my VA taxable and get my 50% base pay taxable together. Just want to make sure that's right.
 

RonG

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It is my understanding that you will have a CH 61 disability retirement and you also qualify for a regular retirement (i.e. 20 years active duty). Additionally, it seems that both the DOD disability percentage and your longevity are at 50%.

Per DFAS: TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:
  • You were in the military or under a contractual obligation to join the military on September 24, 1975, or
  • Your military disability rating is combat-related
The welcome letter you received from DFAS when you first retired indicates whether your pay is computed using your military percentage of disability or your years of service.

Since you will have a 50%+ VA rating and have 20 yrs AD, you will receive CRDP that will restore the amount of retired pay offset by VA compensation. Interestingly, your CRDP should be the same amount of the offset since you have 50% DoD for disability and your longevity percentage seems to be 50% too.

Concurrent Retirement Disability Payments (CRDP): CRDP is a restoration of your retired pay, not a separate entitlement. Therefore, if your retired pay is taxable so is any CRDP payments you receive. If your retired pay is non-taxable, your CRDP is also non-taxable.

CRSC would be an option if you end up with taxable income.

Added: VA compensation is a separate payment and it would s non taxable.

Ron
 
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